NEW YORK (TheStreet) -- While it's common for companies to get a second chance on Wall Street, it's nuts to make a play for snacks company Diamond Foods (DMND), whose stock is getting roasted, falling more than 11% this week after the company posted a net loss for its fiscal fourth quarter and gave a disappointing outlook for its fiscal first quarter.On a relative basis, though, I don't believe that Diamond's outlook swayed drastically from what has been projected by other packaged-food companies such as McCormick ( MKC) and ConAgra ( CAG). But unlike its peers, Diamond has a poor history of execution and has been marred by an accounting scandal. The company -- whose products include PopSecret popcorn, Kettle chips and Emerald snack nuts - expects a tough first quarter due to the relaunch of its nuts business after it allegedly didn't account for payments to walnut farmers properly. In August, the company paid $96 million to settle a securities lawsuit related to the accounting scandal. Diamond is relaunching its Emerald nuts brand even as the market has been weakened by a lower supply of walnuts. And given its $36 million write-down in the fourth quarter from its Kettle-brand assets and other items, Diamond already has its hands full. The timing of the nuts relaunch is also puzzling since the company's nut sales fell 25% in its fourth quarter. It's not all bad, however. The company surpassed analyst estimates with a profit of 9 cents a share on an adjusted basis. Revenue fell 11%, but met management's estimate. I understand the appeal of a beaten-down stock of a company that just beat estimates. But this is a murky situation. Although hiring Raymond Silcock -- who has a long and impeccable track record in the food and beverage industry -- as chief financial officer will help mitigate worries about financial shenanigans, Diamond has little pricing power in a competitive industry. Diamond bulls will say that gross margin rose to 26.6% from 18.9% in the fourth quarter. The company, however, accomplished that by extensive cost-cutting, while offering fewer sales promotions. How long can that last, given that the company competes with heavyweights ConAgra and PepsiCo ( PEP) as well as Mondelez ( MDLZ) and Lance ( LNCE)? Management is optimistic about the company's turnaround progress and is working hard to distance itself from its brutal past. But until revenue and cash flow improve, I don't see why anyone would dare to nimble on this stock. At the time of publication, the author held no position in any of the stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.